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Apr 12th
2021
Startup Accelerator Agreement
Posted by Lisa with Comments Off on Startup Accelerator Agreement filed under Uncategorized

Startup creators should be actively involved in the completion and approval of their incubation programs and project plans defining the key stages of the incubation and compliance criteria, which are included in incubation agreements or separate documents, and which are related to the amount of funds invested in a start-up at a given stage of an incubation program. Therefore, if you decide to terminate the incubator contract in the second phase of the incubator phase, you or your incubator will receive the business, depending on your written agreement. This affiliation agreement (the “Agreement”) is entered into on the date of signing by and between the Newchip accelerator (the accelerator and the “we” or “we”), a department of Newchip Inc. and the affiliate, the company that applied for and obtained membership in the Newchip Accelerator program under the terms of this agreement (the “member” and “the company” including “It” and “You”). You know, life can throw a turn ball at you at any time. So imagine that you had to dissolve your business after receiving a message from the cyber police that says that you may have hacked public Wi-Fi at the airport. In this case, in addition to your insomniac eyes and fear, you have another problem. Even if you own 50% of the company, it can only be liquidated if 100% of the shares vote for it. The same applies to restrictions on transactions. For example, you are a start-up creator with a majority stake and you want to buy a data center for 1 million UAH. Unfortunately, you will not be able to do so if the shareholder contract contains the clause stipulating that all transactions over 1000 UAH should be approved with the unanimous agreement of all shareholders. However, you can ensure that these details are specified in your incubation agreement.

The above is pretty straight and well known, but there are many more details (and potential landmines) in the actual agreements that boot accelerators expect you to sign. Real money should pay for notes and SAFE, not equity – it`s not so much a question of control or power as a legal nuance that a good lawyer will take and prevent when investing an accelerator. As a founder, it is in your best interest to keep the fair market value (FMV) of your common stock as low as possible, to ensure that employees who receive equity can receive that equity at a low price and thus benefit more from the benefits.



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